Metcash completes A$746 million rights issue for Metoz buyout

SYDNEY - Grocery wholesaler Metcash Trading Ltd today completed a A$746 million ($804 million) rights issue to help fund its buy out of South African parent company Metoz.

It said the allotment of convertible unsecured loan stock (CULS) issued under the retail offer are expected to begin trading on the Australian Stock Exchange 1000 AEDT (1200 NZT).

"CULS not accepted under the retail offer were sold in a bookbuild conducted by Deustche Bank on the evening of Thursday, 17 March 2005," it added.

The bookbuild achieved a price of A$2.64, which represents a 10 cent premium to the underwritten issue price of A$2.54.

Metcash issued convertible debt in the form CULS to raise capital to cancel the shareholding of Metoz, which currently holds a 52 per cent stake in Metcash.

The four-part CULS comprised an institutional offer, followed by a bookbuild of any CULS not taken up, then a retail offer and a further institutional bookbuild of an CULS not taken up by the retail holdings.

- AAP